3.3.1

Economic Recovery, 1945-1955

Test yourself

Aftermath of WW2

Germany’s economy and society were destroyed by WW2.

Illustrative background for Damage to the populationIllustrative background for Damage to the population ?? "content

Damage to the population

  • It is estimated that around 4.3 million German troops were killed during the war. It is believed that two thirds of the men born in 1918 did not survive WW2.
    • This left millions of widows (‘women standing alone’) to look after their families.
  • Between 350,000 and 500,000 civilians were killed during the Allied bombings.
  • 20 million Germans were homeless.
Illustrative background for Damage to industryIllustrative background for Damage to industry ?? "content

Damage to industry

  • Key industrial cities, such as Dresden, had been destroyed by the Allied bombings.
Illustrative background for Damage to agricultureIllustrative background for Damage to agriculture ?? "content

Damage to agriculture

  • German agricultural production in 1945 was 35% of pre-war levels.
Illustrative background for OccupationIllustrative background for Occupation ?? "content

Occupation

  • After Germany surrendered on 7th May, the country was initially occupied by Soviet troops.
  • The other Allies (USA, Britain and France) followed suit shortly after.
  • Life for the German people was not easy:
    • Food shortages were common.
    • Allied forces treated civilians poorly and incidences of rape were common.

The Development of Bizonia

In 1947, Britain and the United States combined their zones in Germany to form Bizonia. This was a direct violation of Potsdam and angered the Soviet Union.

Illustrative background for Clashes between the East and West before 1947Illustrative background for Clashes between the East and West before 1947 ?? "content

Clashes between the East and West before 1947

  • Zones occupied by the British, French and United States were run as capitalist economies.
  • Free trade was used to stimulate economic growth.
  • But the Soviet sector was run along communist lines.
  • Stalin and his government confiscated produced goods in Germany for the Soviet Union.
Illustrative background for Economic problemsIllustrative background for Economic problems ?? "content

Economic problems

  • The harsh winter of 1946/1947 led to shortages in Germany. Zones had to introduce rationing.
  • Food imports were costing on average $700 million per year.
  • It became apparent that the zones needed to cooperate.
Illustrative background for Creation of BizoniaIllustrative background for Creation of Bizonia ?? "content

Creation of Bizonia

  • Bizonia unified the British and American zones economically.
Illustrative background for Creation of TrizoniaIllustrative background for Creation of Trizonia ?? "content

Creation of Trizonia

  • In April 1949, France joined Bizonia to form Trizonia.

Currency Reform

The reform of currency in Trizonia triggered the Berlin Blockade. This led to the permanent division of Germany until 1990.

Illustrative background for The Military markIllustrative background for The Military mark ?? "content

The Military mark

  • In 1945, the Military mark had been introduced as German currency.
  • However, the Soviet zone had printed lots of notes and was devaluing the currency.
  • Furthermore, the shortages after 1946/1947 meant inflation was a risk.
Illustrative background for The DeutschmarkIllustrative background for The Deutschmark ?? "content

The Deutschmark

  • The Deutschmark was introduced to replace the Military mark.
  • The Soviet Zone, however, rejected the currency change.
  • Britain, France and the United States continued to reform their currency.
  • The currency reform was very successful. It led to renewed confidence in the German economy.
Illustrative background for The East German markIllustrative background for The East German mark ?? "content

The East German mark

  • In response to the Allied currency reform, the Soviets introduced their own currency.

Jump to other topics

1Political & Governmental Change, 1918-1989

2Opposition, Control & Consent 1918-1989

3Economic Developments & Policies, 1918-1989

4Aspects of Life, 1918-1989

5Historical Interpretations

Go student ad image

Unlock your full potential with GoStudent tutoring

  • Affordable 1:1 tutoring from the comfort of your home

  • Tutors are matched to your specific learning needs

  • 30+ school subjects covered

Book a free trial lesson